Leveraged ETFs tracking Samsung Electronics, SK Hynix see nearly $1B outflows this month in South Korea

August 25 - According to Caixin, as enthusiasm for AI trading cools and regulators introduce measures to curb related investment demand, leveraged ETFs tied to South Korean chipmakers have seen nearly $1 billion in outflows this month. Data shows that as of late August, leveraged products tracking Samsung Electronics saw outflows of $381 million, while similar products tracking SK Hynix saw outflows of $601 million. This marks the first monthly net outflow for such products since their launch in late May. These products aim to double the daily price moves of individual chip stocks and are seen as amplifying overall market volatility. In particular, global AI stocks faced a sell-off in July, leading to a historic 22% drop in South Korea's composite index. Subsequently, regulators raised the minimum deposit threshold for new investors and mandated a five-day simulated trading period.